Alberta
History, Controversy & Indigenous Involvement – Death of Keystone XL
For many, few stories have been as captivating and as frustrating as that of the stop-and-start Keystone XL pipeline project, which appears to officially be reaching its end following the inauguration of President Joe Biden on Wednesday, January 20, 2021.
The Keystone XL pipeline extension was originally proposed by TC Energy in 2008 as the 4th phase of the existing Keystone Pipeline System, which traverses Canada and the United States. The 1,947 km pipeline would run from Hardisty, Alberta, to Steele City, Nebraska, dramatically increasing the transportation capacity of Alberta crude oil to 830,000 barrels per day.
The National Energy Board first approved the Keystone XL application in March 2010, with a number of conditions in place to protect environmental and landowner interests.
Opposition towards the project developed quickly, largely on the basis of environmental concerns. Environmental assessments released by the U.S. State Department, which established the pipeline would have “limited environmental impact”, were met with public backlash and mass protests.
In 2011, the State Department required TC Energy (then TransCanada) to reroute the pipeline around an “ecologically sensitive” area in Nebraska, to which TC Energy agreed.
In January 2012, President Barack Obama rejected the Keystone XL, but invited TC to submit another application, which was done in May 2012.
Following another 3 years of legislative debate, protest and controversial back and forth, Obama vetoed the bill to build the Keystone XL on February 24, 2015.
On November 6, 2015, the Obama Administration once again rejected TC Energy’s application to build the Keystone XL pipeline.
In this context, tensions continued to rise, as massive amounts of money and potential jobs hung in the balance with no end in sight. In 2016, Republican presidential candidate Donald Trump included the Keystone XL in his campaign, vowing to approve it if elected as President of the United States.
Following his election in November 2016, President Trump signed an executive order approving the Keystone XL pipeline, along with an order requiring American pipelines be built with American steel.
In late 2018, the pipeline’s construction was delayed once again by a U.S. federal judge, citing environmental impact.
Construction resumed in April 2020, following a pledge from Alberta Premier Jason Kenney to invest CAD$1.5 billion in the project in March 2020. Outrage from environmental and Indigenous groups continued in the wake of the announcement.
In May 2020, then-presumed presidential nominee Joe Biden shared plans to shutdown the Keystone XL as a part of his campaign. (1)
It is January 2021, and Biden has indeed followed through on his claim to scrap the pipeline. To the outrage of many Albertans and their fellow Canadians, one of Biden’s first executive orders as President of the United States, just hours after his inauguration, was to revoke TC Energy’s permit for the Keystone XL.
As of December 2020, more than 150 kilometres of pipeline had already been installed. According to Financial Post, the cancellation leaves behind approximately 48,000 tons of steel.
Biden’s decision has served to deepen the division between pro and anti-pipeline groups, including the opposing positions expressed by a number of Canadian Indigenous groups.
Over the course of the past decade, Indigenous opposition to the pipeline has been well documented through a series of protests and petitions, featuring countless Canadians who rallied in support of First Nations groups, environmental concerns and land rights.
In 2016, Donald Trump’s renewed approval of the pipeline was met with equally renewed opposition by those groups determined to halt the project once and for all. “The fight to kill the Keystone XL pipeline begins anew,” said Dallas Goldtooth, lead organizer for the Indigenous Environmental Network in 2017, “and Donald Trump should expect far greater resistance than ever before.”
On the other side of this opposition, the historic formation of the Natural Law Energy coalition came as a shock to many. Natural Law Energy (NLE) is a coalition of First Nations groups who expressed their support for the Keystone XL pipeline by pursuing investment opportunities with TC Energy. Little Pine First Nation, Louis Bull Tribe, Nekaneet Cree First Nation, Ermineskin Cree Nation and Akamihk Montana Cree First Nation came together to form the coalition with the ambition of providing First Nations groups with financial resources and opportunities.
For Chief Alvin Francis of Nekaneet First Nation in Saskatchewan, the pipeline presented an opportunity to secure funding for indigenous communities and aid indigenous youth in their schooling or business endeavors for years to come. “It’s about making life better for all of our youth,” he told the Globe and Mail in November 2020.
Just as Indigenous anti-pipeline groups celebrate the latest development, Biden’s executive order to cancel the pipeline once again has been met with disappointment from members of the NLE and its supporters.
Recent developments over the multi-billion dollar Keystone XL have also led to heated discussions between the Kenney Administration and Canadian Prime Minister Justin Trudeau. Kenney’s response to the Canadian Federal Government as well as the Biden Administration was one of absolute disappointment and anger, as Alberta’s oil and gas industry sustained another massive hit. He went as far as to call upon Trudeau to impose economic sanctions on the United States.
While many have echoed Kenney’s sentiments regarding the cancellation of the pipeline and the Biden Administrations early treatment of Canada and the province of Alberta, others have identified this development as an opportunity for Alberta to diversify. Under the current economic circumstances, can Alberta overcome the loss of the Keystone XL? Should Alberta focus on diversifying? Given the ongoing global shift towards renewable energy technology, can we afford not to?
For more stories, visit Todayville Calgary.
Better, faster, more affordable auto insurance
Alberta’s government is introducing a new auto insurance system that will provide better and faster services to Albertans while reducing auto insurance premiums.
After hearing from more than 16,000 Albertans through an online survey about their priorities for auto insurance policies, Alberta’s government is introducing a new privately delivered, care-focused auto insurance system.
Right now, insurance in the province is not affordable or care focused. Despite high premiums, Albertans injured in collisions do not get the timely medical care and income support they need in a system that is complex to navigate. When fully implemented, Alberta’s new auto insurance system will deliver better and faster care for those involved in collisions, and Albertans will see cost savings up to $400 per year.
“Albertans have been clear they need an auto insurance system that provides better, faster care and is more affordable. When it’s implemented, our new privately delivered, care-centred insurance system will put the focus on Albertans’ recovery, providing more effective support and will deliver lower rates.”
“High auto insurance rates put strain on Albertans. By shifting to a system that offers improved benefits and support, we are providing better and faster care to Albertans, with lower costs.”
Albertans who suffer injuries due to a collision currently wait months for a simple claim to be resolved and can wait years for claims related to more serious and life-changing injuries to addressed. Additionally, the medical and financial benefits they receive often expire before they’re fully recovered.
Under the new system, Albertans who suffer catastrophic injuries will receive treatment and care for the rest of their lives. Those who sustain serious injuries will receive treatment until they are fully recovered. These changes mirror and build upon the Saskatchewan insurance model, where at-fault drivers can be sued for pain and suffering damages if they are convicted of a criminal offence, such as impaired driving or dangerous driving, or conviction of certain offenses under the Traffic Safety Act.
Work on this new auto insurance system will require legislation in the spring of 2025. In order to reconfigure auto insurance policies for 3.4 million Albertans, auto insurance companies need time to create and implement the new system. Alberta’s government expects the new system to be fully implemented by January 2027.
In the interim, starting in January 2025, the good driver rate cap will be adjusted to a 7.5% increase due to high legal costs, increasing vehicle damage repair costs and natural disaster costs. This protects good drivers from significant rate increases while ensuring that auto insurance providers remain financially viable in Alberta.
Albertans have been clear that they still want premiums to be based on risk. Bad drivers will continue to pay higher premiums than good drivers.
By providing significantly enhanced medical, rehabilitation and income support benefits, this system supports Albertans injured in collisions while reducing the impact of litigation costs on the amount that Albertans pay for their insurance.
“Keeping more money in Albertans’ pockets is one of the best ways to address the rising cost of living. This shift to a care-first automobile insurance system will do just that by helping lower premiums for people across the province.”
Quick facts
- Alberta’s government commissioned two auto insurance reports, which showed that legal fees and litigation costs tied to the province’s current system significantly increase premiums.
- A 2023 report by MNP shows
Alberta maintains a balanced budget while ensuring pressures from population growth are being addressed.
Alberta faces rising risks, including ongoing resource volatility, geopolitical instability and rising pressures at home. With more than 450,000 people moving to Alberta in the last three years, the province has allocated hundreds of millions of dollars to address these pressures and ensure Albertans continue to be supported. Alberta’s government is determined to make every dollar go further with targeted and responsible spending on the priorities of Albertans.
The province is forecasting a $4.6 billion surplus at the end of 2024-25, up from the $2.9 billion first quarter forecast and $355 million from budget, due mainly to higher revenue from personal income taxes and non-renewable resources.
Given the current significant uncertainty in global geopolitics and energy markets, Alberta’s government must continue to make prudent choices to meet its responsibilities, including ongoing bargaining for thousands of public sector workers, fast-tracking school construction, cutting personal income taxes and ensuring Alberta’s surging population has access to high-quality health care, education and other public services.
“These are challenging times, but I believe Alberta is up to the challenge. By being intentional with every dollar, we can boost our prosperity and quality of life now and in the future.”
Midway through 2024-25, the province has stepped up to boost support to Albertans this fiscal year through key investments, including:
- $716 million to Health for physician compensation incentives and to help Alberta Health Services provide services to a growing and aging population.
- $125 million to address enrollment growth pressures in Alberta schools.
- $847 million for disaster and emergency assistance, including:
- $647 million to fight the Jasper wildfires
- $163 million for the Wildfire Disaster Recovery Program
- $5 million to support the municipality of Jasper (half to help with tourism recovery)
- $12 million to match donations to the Canadian Red Cross
- $20 million for emergency evacuation payments to evacuees in communities impacted by wildfires
- $240 million more for Seniors, Community and Social Services to support social support programs.
Looking forward, the province has adjusted its forecast for the price of oil to US$74 per barrel of West Texas Intermediate. It expects to earn more for its crude oil, with a narrowing of the light-heavy differential around US$14 per barrel, higher demand for heavier crude grades and a growing export capacity through the Trans Mountain pipeline. Despite these changes, Alberta still risks running a deficit in the coming fiscal year should oil prices continue to drop below $70 per barrel.
After a 4.4 per cent surge in the 2024 census year, Alberta’s population growth is expected to slow to 2.5 per cent in 2025, lower than the first quarter forecast of 3.2 per cent growth because of reduced immigration and non-permanent residents targets by the federal government.
Revenue
Revenue for 2024-25 is forecast at $77.9 billion, an increase of $4.4 billion from Budget 2024, including:
- $16.6 billion forecast from personal income taxes, up from $15.6 billion at budget.
- $20.3 billion forecast from non-renewable resource revenue, up from $17.3 billion at budget.
Expense
Expense for 2024-25 is forecast at $73.3 billion, an increase of $143 million from Budget 2024.
Surplus cash
After calculations and adjustments, $2.9 billion in surplus cash is forecast.
- $1.4 billion or half will pay debt coming due.
- The other half, or $1.4 billion, will be put into the Alberta Fund, which can be spent on further debt repayment, deposited into the Alberta Heritage Savings Trust Fund and/or spent on one-time initiatives.
Contingency
Of the $2 billion contingency included in Budget 2024, a preliminary allocation of $1.7 billion is forecast.
Alberta Heritage Savings Trust Fund
The Alberta Heritage Savings Trust Fund grew in the second quarter to a market value of $24.3 billion as of Sept. 30, 2024, up from $23.4 billion at the end of the first quarter.
- The fund earned a 3.7 per cent return from July to September with a net investment income of $616 million, up from the 2.1 per cent return during the first quarter.
Debt
Taxpayer-supported debt is forecast at $84 billion as of March 31, 2025, $3.8 billion less than estimated in the budget because the higher surplus has lowered borrowing requirements.
- Debt servicing costs are forecast at $3.2 billion, down $216 million from budget.
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